Builders and banks lead market fall

With a Halifax survey showing house prices falling at their highest monthly level since 1992, builders and banks are leading the market lower at the moment.

The FTSE 100 has dropped below 6000 once more, giving up much of yesterday's gain into the bargain. It now stands at 5958.7, down 56.1 points.

Persimmon is among the main fallers, down 24p at 682p, while in the 250 index, Bellway, Barratt Developments, Berkeley, Redrow and Taylor Wimpey, are down around 4%.

Kaupthing analysts commented: "It is a disappointing number, albeit one month in isolation should not be taken too seriously. The housebuilding rally has faltered over the past few days, as we feared it would, and further weakness we think is coming. Sells on the basis of most risk to consensus earnings versus our estimates are Barratt, Taylor Wimpey, Berkeley and Redrow."

HBOS, which owns the Halifax, is 20.5p lower at 539.5p.

Elsewhere, mining group Kazakhmys dipped 38p to £16.59 as it asked the Takeover Panel for a put-up or shut-up ruling on rival Eurasian Natural Resources, 31p lower at £10.69, to make a firm takeover offer or walk away.

Among the other losers was GW Pharmaceuticals. Its shares dropped 21% to 56.5p after a trial of its cannabis-based medicine to treat neuropathic pain in multiple sclerosis patients failed to show significant improvement compared to a placebo.